Received a 1099-NEC instead of W2 from my employer - how to handle this for tax filing?

This is unfortunately pretty common and you're right to question it. The IRS has specific rules about who should be classified as an employee vs. an independent contractor. Based on what you've described (set schedule, company equipment, working at their office, direct supervision), you likely should have been classified as an employee. You have a few options. First, you can talk to your employer and explain that you believe you've been misclassified. Sometimes it's an honest mistake, but many employers do this to avoid paying their share of taxes and benefits. If that doesn't work, you can file Form SS-8 with the IRS to request a determination of your worker status. You can also file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" with your tax return to report the income and only pay the employee portion of Social Security and Medicare taxes rather than the full self-employment tax. Keep in mind the determination process can take months, but it might be worth it given the amount of money involved.

I went through something almost identical last year with a design studio and discovered taxr.ai (https://taxr.ai) after stressing for weeks about my misclassification. It really helped me understand my options with the 1099-NEC vs W-2 situation. What I found useful was uploading my 1099 and having their system analyze my specific situation. It broke down exactly what forms I needed to file and gave me a clear explanation of worker classification rules that applied to my case. They even generated a detailed report I could bring to my employer to show why I should have been classified as a W-2 employee. In my case, I didn't have to file the SS-8 because my employer agreed to correct the situation after seeing the documentation. Saved me thousands in self-employment taxes!

Just wanted to update everyone. I was super skeptical about taxr.ai as mentioned in my previous comment, but I was desperate enough to try it after my accountant quoted me $350 just to look at my situation. Honestly, it was way better than expected. The system asked really specific questions about my work arrangement that I hadn't even considered - like who sets my hours, who provides tools, whether I can work for other clients, etc. The report it generated was comprehensive and professional. I showed it to my employer yesterday, and while they weren't thrilled, they agreed to correct my status going forward and issue a corrected W-2 for this year. They admitted they had classified several of us incorrectly and are now fixing everyone's status. Saved me about $4,000 in self-employment taxes!

If your employer refuses to reclassify you, and you need to deal with the IRS directly, getting through to someone who can actually help is a nightmare right now. I spent TWO MONTHS trying to reach someone about my misclassification issue. I finally discovered Claimyr (https://claimyr.com) and watched their demo video (https://youtu.be/_kiP6q8DX5c) - they basically hold your place in the IRS phone queue and call you when an agent is about to answer. I was honestly ready to try anything at that point. Got connected to an IRS agent in about 45 minutes instead of waiting on hold for 3+ hours. The agent walked me through filing the SS-8 and Form 8919, and explained exactly what documentation I needed to prove I was misclassified. Such a relief to finally talk to someone who could help!

I need to admit I was wrong. After expressing skepticism about Claimyr in my earlier comment, I decided to try it myself for my own 1099 vs W-2 issue. Got connected to an IRS representative in 53 minutes (compared to my previous 3-hour wait that ended with a disconnection). The agent was incredibly helpful and confirmed I could file Form SS-8 for determination and use Form 8919 to avoid paying the full self-employment tax while waiting for the determination. The agent also suggested documenting everything about my work arrangement - the set schedule, supervision, equipment provided, etc. She said these cases are fairly common and I had a strong case for employee classification based on my situation. For anyone dealing with misclassification, don't waste days trying to get through to the IRS. This service literally saved me days of frustration.

This happened to my husband last year. We contested it with the company first, and they refused to change it. We ended up filing the SS-8 form and paying only the employee portion of FICA using form 8919. It took the IRS about 4 months to make a determination, but they ruled in our favor. The company had to reclassify him and pay their portion of the taxes, plus penalties. They weren't happy about it, but that's what happens when you misclassify employees to save money. Its definately worth fighting if you meet the employee criteria!

Im in this situation right now!! My so-called "employer" gave me a 1099 even tho I literally punch a time clock and wear their uniform! They claim since I can "set my own schedule" (I can't) I'm a contractor. I'm FURIOUS because they took NO taxes out all year and now I owe like $12,000!! Has anyone successfully gotten the company to pay the employer portion of taxes after the fact? Or am I just screwed? I already quit that job cause they were shady af.

I'm dealing with this exact situation right now too! Got a 1099-NEC when I should have received a W-2 based on my work arrangement. After reading through all these comments, I'm planning to try the direct conversation approach first with my employer. For anyone in a similar spot, I found this IRS publication really helpful: Publication 15-A (Employer's Supplemental Tax Guide) has a detailed section on worker classification. It covers the three main categories they look at: behavioral control, financial control, and relationship type. The key factors that suggest employee status include: the company controlling when, where, and how you work; them providing equipment and facilities; you working set hours; having a continuing relationship; and the work being a key part of their business operations. If the direct approach doesn't work, I'm prepared to file Form SS-8 for an official determination. The peace of mind of knowing you're following the correct tax procedures is worth potential workplace tension, especially when thousands of dollars in self-employment taxes are at stake. Has anyone had success using the IRS's online resources to build their case before approaching their employer?

This is such a stressful situation, but you're absolutely right to question the classification! I went through something similar a few years ago and it's worth fighting for proper classification. One thing I'd add to the great advice already given - make sure you document EVERYTHING about your work arrangement before having that conversation with your employer. Write down specific examples of: - How they control your schedule (do they set your hours?) - What equipment/software they provide - Whether you have a dedicated workspace at their office - How they train and supervise you - Whether you can work for other clients (spoiler: probably not if you're working full-time) Having concrete examples makes it much harder for them to argue you're truly an independent contractor. The fact that you work at their office with their equipment on a set schedule sounds like textbook employee classification to me. Also, don't panic too much about the tax bill. Even if you end up having to file as a contractor this year, you can set up a payment plan with the IRS if needed. But definitely pursue the reclassification - at your income level, the difference between contractor and employee taxes is substantial. Keep us updated on how it goes! This community has been really helpful for these kinds of situations.